Sunday, October 30, 2005

Ni Hao, America!

According a recent article in Inc. magazine there are now more people in China learning to speak English than there are people in the United States who speak English. I don’t have any data to support my theory, but I suspect that the percentage of people in the United States who are learning to speak Chinese is miniscule in comparison.

We Americans have always been a self-centered bunch, unwilling to learn other languages or cultures. How many Americans speak Japanese despite the Japanese “invasion” of the 1980s? Despite huge numbers of Spanish-speaking Hispanics living in the United States, few Americans learn to speak Spanish. Even many second-generation Hispanics don’t learn Spanish, and many are encouraged by their families to speak only English.

Anyone who has traveled much outside of the United States has heard our global neighbors complain about our arrogance and unwillingness to learn other languages or understand other cultures. Despite the world’s disdain for our inward-looking focus, other nations have tolerated our behavior because there wasn’t much else they could do. And English has become the default language for the global economy (much to the consternation of the French).

However, the times are quickly changing, and if we don’t begin to change our attitudes about our place in the global economy, we will continue to lose market share and political clout to China, Japan, South Korea, India, Germany, Russia, Brazil, Mexico and others.

All this geopolitical talk may seem out of place in a magazine focused on quality professionals. But our readers deal with these issues daily: inspecting incoming parts from foreign suppliers or subsidiaries, competing with companies from other nations that can produce higher quality parts and lower prices, communicating with an increasingly diverse workforce, and more.

I’m not suggesting that everyone take a Berlitz course in Mandarin Chinese. But I do think that everyone in every industry in this country needs to dial back the anti-China, anti-Japan, anti-if-it-ain’t-made-here paranoia and begin to look our organizations’ roles in the global economy, not just the local one.

If I am buying parts from a supplier in Cleveland, I expect them to be built to my specifications. If am selling parts to a company in Phoenix, I am expected to speak the language of my customer and deliver goods that meet his or her specifications. The same is true if we’re buying or selling in Shanghai, Tokyo or Berlin.

The quality world is full of great concepts like listening to the voice of the customer. It’s also largely based on a premise that quality is defined as conformance to requirements. So isn’t time we began listening to the voice of the customers no matter where in the world they are and met their requirements no matter the language?

In addition, we are responsible for some of the outsourcing. We are, in effect, handing business to companies in other countries. For example, call centers in India.

Joe De Feo, president of the Juran Institute, made an interesting observation at the recent Outlook on Quality Systems conference. “People are worried about call centers in India,” he said. “India isn’t the problem. We are outsourcing our cost of poor quality to India and other nations because we can’t prevent the problems that cause customers to call the centers.” This isn’t an outsourcing issue; it’s a quality problem.

China scares the hell out of most people, and rightly so. The cheap labor pool is nearly inexhaustible, the government is determine is to make China an economic superpower and it’s a place few Americans know much about or understand.

Having traveled in China, I can tell you that the Chinese people are warm, friendly, hard-working and intelligent. They are eager to be part of the world economy, and they deserve it. I think they can be tremendous allies. Of course, that doesn’t mean we have to shutter the doors of U.S. manufacturers. But to keep those doors open, we’d better start working to understand the Chinese (and to improve the quality of the goods and services we provide).

Frankly, in some cases, sending jobs to China might make the most sense for some companies and industries. In the 1970s and 1980s it seemed as if Japan would destroy us. Our entire electronics manufacturing industry virtually disappeared, moving to Japan, South Korea, Malaysia, Mexico and elsewhere. We survived that. We also survived the huge influx of Japanese automobiles into North America. Not only did the consumer benefit, but many of the Japanese cars on the road today are built in North America by well-paid Americans with good benefits.

Expect to see similar shifts because of China. It might be painful in the short-term, but we will adapt and survive if we can learn to understand our competitors and work with them.

I’d like to hear your thoughts on America’s place in the global economy and China, in particular. Also, let me know how your job as a quality professional is being affected by the global economy. I’ll try to respond to and share as many of these comments as possible.

11 Comments:

At 10:58 PM , Blogger Scott Paton said...

Learning Chinese may not be easy, but speaking a little of any language is certainly appreciated by the locals. Your daughter is to be commended for making the effort.

 
At 11:28 AM , Anonymous Anonymous said...

Scott,
Thanks for the article, cooler heads prevail! I would like nothing more than to keep manufacturing jobs in the US but we live in a great big world and must deal with this reality. As long as consumers demand lower and lower prices companies will find ways to get there and this often means pulling China into the equation. The disturbing part for me is when people start crying that the sky is falling and that the end is near! Instead of responding on a purely emotional level we need to make calm, responsible decisions as to what our role will be in the global economy, or as you stated we stand to be left behind. Thanks for the insight.

 
At 5:26 AM , Anonymous Anonymous said...

One needn't be an emotional paranoiac to see a long-term threat from China - an expansionist, totalitarian regime hostile to our way of life and position of dominance. I'm sure the citizens are lovely people - just like the average German in WW2 or Russian during the Cold War - the people themselves are not the enemy. Cheap labor isn’t the only advantage Chinese manufacturers enjoy – government export subsidies, grossly undervalued currency, and disregard for intellectual property rights are not insignificant factors. Innovation is the only real advantage that US business has – yet that is largely nullified by the reverse engineering/copying efforts of the Chinese, who will steal any concept that can be profitably sold. I’m grateful to be in the US while posting – in China this kind of critical statement would be unlikely to make it through the filters.

 
At 12:04 PM , Anonymous Anonymous said...

I don't think that the need for Americans to speak Chinese was really the point to this article. Rather, we simply need to understand the needs and wants of the Chinese as customers and stakeholders in the global economy we now find ourselves in. The more we complain and resist participating along with the rest of the world, the more we fall behind. Our strength in the past has always been our inovative skills, but the Japanese and other Asian manufacturers have beaten us with their skills at process perfection, which requires much more dedication and discipline than most Americans are accustomed to. There's a lesson to be learned here.

 
At 8:42 AM , Anonymous Anonymous said...

The point about "process perfection" has validity. The manufacturing companies I've worked for have not had enough people with process knowledge and commitment to improvement, which held back their improvement programs. I offer the hypothesis that this is another component of the low-wage country issue. In places where most people are desperately poor, a productive factory job probably looks pretty good. I'd like to have a hungry labor pool to draw from when trying to bring in new talent - the odds of finding a clever person to do the work would be much improved. In this country (if I'm seeing things clearly) manufacturing is seen as a low-prestige kind of work. The best and brightest kids are more likely to go for the big bucks, and for work that has a more positive/enviable social connotation. In China, and other developing areas, just having a steady livable wage is probably very attractive to a lot of people, and serves as a sign of accomplishment. Given the severe male/female imbalance in China this seems like an especially good driver for Chinese men seeking to compete for the limited supply of mates. Thus, smarter kids are willing to embrace it and provide a work force that has a better understanding of its environment, and is better able to learn and adapt. That gives employers access to more capable operators and engineers, who are (by necessity) committed to their source of livelihood in a way that we rarely see here in the US.

 
At 1:12 PM , Anonymous Anonymous said...

American to be self-centered with one example I can think of "English units" - we are the only nation on the face of earth still using inch/miles/pound. We simply refuse to take the easier 1 and 0 metric system. It had costed so much by conversion errors and NASA had bad experience due to this error.
As far as jobs, Japanese jobs lost to Taiwan in the 70's, now Taiwanese jobs lost to China. This is global economy. We need to deal with better educated engineers/scientists in the US. By raising two kids born in this country, I find that only 10% high school graduates entering this field. There is not much emphasis on the criticality by the general public rather than the controlling media of sports and entertainments.

 
At 7:59 AM , Anonymous Anonymous said...

My two cents:

Have the Chinese learn english....that way I don't have to learn Chinese

 
At 12:20 PM , Anonymous Anonymous said...

Give my copy of Quality Digest to your friends in China.

 
At 10:11 AM , Anonymous Anonymous said...

It is sad bot very true,we spend
te time glotting,free-lowding,abusing the system.
Becouse we alout our self to be
trained under a peatifull exsistence created by thouse in
the top that crave the power, and
thouse in the bottom, whom are force to begg for there right to
humanity. in the meantime we the
one the midle, received deshonor,
mal-feces and lots of propaganda.

 
At 8:48 AM , Anonymous Anonymous said...

Dear Mr. Paton;
I suggust you get your head out of the sand. The Chinese government and people are committed to quality? You obviously have never purchased a cell pnone or an IPod or any other electronic piece of junk made in China. And you have obviously not been told by a Chinese manufacturer of metal parts that 5% broken parts is a totally acceptable level of quality. I also believe in free trade and I think the people in this country should wake up and demand that China make quality goods if we as consumers are going to buy them. I think we as a people suffer from quality apathy because we are unwilling to demand better.

 
At 9:27 AM , Anonymous Anonymous said...

Much can be said about the poor quality of Chinese products and the counterfiting of American (and other) products on a massive scale by Chinese firms. But its hard to argue about the fact that so many products that were produced here in America just a couple of years ago are now being made in China for a fraction of the cost. I know this first hand as the company I work for has lost much of its customer base to Chinese manufacturers, not because of quality, but soley because of cost. The days of getting premium pricing for good quality & service are over, and this is being reflected in the mind set of American businesses. Quality has taken a back seat, and I'm afraid this will continue until customers begin to see quality as more important, or at least equally important to cost.

 

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